AvantGo Reports Record Third Quarter Results; Quarterly Revenues Increase 341 Percent over Last Year.Business Editors and High Tech Writers SAN MATEO San Mateo (săn mətā`ō), city (1990 pop. 85,486), San Mateo co., W Calif., on San Francisco Bay; inc. 1894. It is a commercial and retail center with some high-technology manufacturing. San Mateo, Spanish for St. , Calif.--(BUSINESS WIRE)--Oct. 30, 2000 AvantGo AvantGo is a Web page / file synchronization service for personal digital assistants (PDAs) and smartphones. The system consists of browser client software running on the PDA, a synchronization server, and (optionally) an Internet-connected PC to transfer Web pages into the PDA. , Inc. (Nasdaq: AVGO), a leading provider of mobile infrastructure software and services, today reported financial results for its third quarter ended September September: see month. 30, 2000. Revenues for the quarter were $4.6 million, representing a 341 percent gain over revenues of $1.1 million for the same quarter last year. Revenues for the nine months ended September 30, 2000 were $9.8 million, a 430 percent increase from $1.8 million for the same period last year. In the third quarter, 51 percent of the Company's revenues came from software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. to enterprise customers, while 49 percent of its revenues came from professional and hosted services. Net loss, before non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $5.3 million, was $10.9 million versus $1.6 million in the third quarter of the previous year. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss per share before non-cash charges was $0.47 for the quarter. "We are delighted to report that our business is strong and that we expect continued growth in both our AvantGo Enterprise and AvantGo Mobile Internet Refers to gaining access to the Internet using a lightweight, handheld device. See Mobile IP, PDA, smartphone and mobile TV. service businesses," said Richard Owen Sir Richard Owen KCB (July 20 1804–December 18 1892) was an English biologist, comparative anatomist and palaeontologist. He was widely regarded as malicious and dishonest but he was also one of the most brilliant and influential biologists of his time. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AvantGo. "We had a solid third quarter as evidenced by new enterprise customers, expanded distribution of our software by hardware vendors and through new sales channels, increased adoption of the AvantGo mobile Internet service by content customers and registered users, the completion of our IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. and the addition of key executives to our management team." The following highlights were announced during the quarter ended September 30, 2000: -- New AvantGo Enterprise customer UBS Warburg launched its mobile equity research distribution service through AvantGo Enterprise Online. CreSenda Wireless is deploying AvantGo software to enable its customers to use wireless devices to manage their businesses. -- Palm, Inc. is now bundling AvantGo with its recently released m100 and Limited-Edition Palm Vx handheld computers. -- Sony is now bundling AvantGo with its newly released CLIE Handheld devices. -- Adobe Systems, Inc. and AvantGo announced that the two companies are streamlining the development of content for mobile and wireless devices through Adobe GoLive 5.0. -- AvantGo completed its initial public offering, raising approximately $69 million in net proceeds and further strengthening its balance sheet. -- AvantGo appointed two new executives: David Cooper, chief financial officer, and Stan Ratcliffe, general manager of AvantGo Enterprise. AvantGo provides mobile infrastructure software and services to Global 1000 companies through its AvantGo Enterprise business and hosts the AvantGo mobile Internet service for brand-name businesses. The Company saw sales activity from enterprises in a variety of industries, including consumer products, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and healthcare. AvantGo customers are extending their mission-critical corporate applications - sales force automation Automating the sales activities within an organization. A comprehensive SFA package provides such functions as contact management, note and information sharing, quick proposal and presentation generation, product configurators, calendars and to-do lists. , business intelligence, supply chain management and collaboration Working together on a project. See collaborative software. solutions - to mobile devices. During the third quarter, AvantGo Enterprise developed new relationships with recognized organizations, including Bristol-Myers Squibb Bristol-Myers Squibb (NYSE: BMY), colloquially referred to as BMS, is a pharmaceutical corporation, formed by a 1989 merger between pharmaceutical companies Bristol-Myers Company, founded in 1887 by William McLaren Bristol and John Ripley Myers in Clinton, NY (both were , DaimlerChrysler, UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Warburg War·burg , Otto Heinrich 1883-1970. German biochemist. He won a 1931 Nobel Prize for research on the respiration of cells. , Continental Airlines, GE Supply and the U.S. Senate. The Company is now creating third-party developer  It has been suggested that First-party developer, Second-party developer be merged into this article or section. and channel sales
relationships by working with software companies, systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. ,
value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. and application service providers that will sell
and integrate AvantGo software into their business applications.
"Our Global 1000 enterprise pipeline is robust and we continue to position the Company to take advantage of the rapidly growing and mobile markets for our products and services," added Mr. Owen. "As we focus on powering the mobile economy, we are committed to supporting the leading mobile device platforms, including Palm OS, Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. CE and Internet-enabled phones, as well as emerging wireless standards and integrated hardware technologies to deliver real-world wireless and off-line solutions to our Global 1000 enterprise customers and our mobile Internet service users." The AvantGo mobile Internet service continues to grow both in terms of its user base and the number of optimized content sources. As of September 30, 2000, the AvantGo mobile Internet service is providing personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. information and application services See ASP and Web services. to more than 1.2 million users who subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; more than 650 optimized content sources. New alliances, formed in the third quarter with companies specializing in business, news, lifestyle, sports, entertainment and travel, include organizations such as Sabre, BizTravel, Expedia and Singapore Airlines  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . . In addition to increasing the number of content providers, the Company expanded sales of its wireless advertising products. Advertisers taking advantage of the AvantGo mobile Internet platform in the third quarter included brand-name companies such as Mercedes Benz Mercedes Benz expensive automobile and status symbol. [Trademarks: Crowley Trade, 368] See : Luxury , Nextel, Sales.com, Business 2.0 and Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. . To support its expanding business, the Company grew to more than 320 employees at the end of the third quarter, including 48 salespeople sales·peo·ple pl.n. Persons who are employed to sell merchandise in a store or in a designated territory. in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. Key new hires in the sales organization include a vice president of channel sales for AvantGo Enterprise and a vice president of sales for the AvantGo mobile Internet service. "Our successful IPO in September is a reflection of the industry's commitment to the wireless Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the ," said Mr. Owen. "As a first-mover in this space, we have invested hundreds of engineering man-years to develop our unique and proven intellectual property and we have attracted a solid management team that can build a sustainable, profitable business by delivering the solutions that enterprise customers need today and in the future." AvantGo's third quarter financial results will be discussed October 30, 2000 at 2:00 PM PST/5 PM EST EST electroshock therapy. EST abbr. electroshock therapy , and will be available by webcast on the Company's website at www.avantgo.com/corp/company, under the navigation bar A set of buttons or graphic images typically in a row or column used as a central point that link you to major topic sections on a Web site. If the navigation bar is a single graphic image with multiple selections, it is known as an imagemap. See imagemap. "investors," or at www.streetevents.com. A replay also will be available from the Company's website through November 15, 2000. About AvantGo AvantGo, Inc. (Nasdaq: AVGO) is a leading provider of infrastructure software and services that power the mobile economy. AvantGo Enterprise software enables businesses to increase the value of their corporate information systems by extending existing enterprise applications and critical information to employees, customers and business partners. The company also provides the AvantGo mobile Internet service, a hosted network that enables hundreds of businesses to deliver their content and applications to more than 1.2 million mobile consumers. AvantGo is a pioneer in delivering real-world solutions for both wireless and off-line use. For more information, please visit www.avantgo.com. This news release regarding third quarter financial results includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to, quarterly fluctuations in AvantGo's revenues or other operating results, AvantGo's failure to meet financial expectations of analysts and investors, risk as related to market acceptance of AvantGo's products and services, slow down in the adoption of mobile devices for which the market for AvantGo's software is dependent, impact of long sales and implementation cycles for AvantGo's enterprise products, AvantGo's reliance upon a limited number of customers for a majority of revenue, AvantGo's need to maintain and enhance business relationships with leading hardware and software manufacturers, content providers and other parties, AvantGo's ability to expand its sales force and engineering group, AvantGo's ability to manage growth, AvantGo's ability to further its brand awareness and market effectively the functionality of its software, AvantGo's activities and those of others regarding protection of intellectual property, the release of competitive products and other actions by competitors, attraction and retention of personnel and economic downturns in either domestic or foreign markets. Further details on these risks are set forth in our filings with the Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov. Forward-looking statements in this release are generally identified by words such as "expect," "anticipate,"' "intend," "believe," "assume," "estimate," "plan" and other similar words and expressions. AvantGo does not undertake an obligation to update forward-looking statements. Note to Editors: AvantGo, AvantGo Enterprise and the AvantGo logo are trademarks of AvantGo, Inc. All other trademarks are the property of their respective owners.
AvantGo, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Quarter Ended Year to Date
September 30, September 30,
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
License fees $ 2,359 $ 445 $ 5,173 $ 914
Services 2,277 607 4,580 927
------- ------ ------- ------
Total revenues 4,636 1,052 9,753 1,841
Costs and expenses:
Cost of license fees 39 18 117 34
Cost of services 1,040 495 2,452 835
Product development 3,097 780 6,207 1,831
Sales and marketing 9,589 1,134 19,227 2,248
General and
administrative 2,270 398 4,952 757
Purchased in-process
research and development - - 600 -
Amortization of
goodwill, intangible
assets and deferred
compensation, and
other acquisition-
related costs 5,289 766 12,030 1,361
------- ------- ------- ------
Total costs
and expenses 21,324 3,591 45,585 7,066
------- ------- ------- ------
Loss from operations (16,688) (2,539) (35,832) (5,225)
Interest and other
income, net 458 170 1,170 183
------- ------- ------- ------
Net loss $(16,230) $ (2,369) $(34,662) $(5,042)
======= ======== ======== =======
Net loss per share data:
Basic and diluted $ (2.67) $ (0.51) $ (5.69) $ (1.22)
======= ======== ======== =======
Pro forma basic and
diluted $ (0.70) $ (0.15) $ (1.64) $ (0.37)
======= ======== ======== =======
Shares used in calculation
of net loss per share:
Basic and diluted 6,080 4,632 6,091 4,138
Pro forma basic and
diluted (1) 23,211 16,104 21,098 13,503
Supplemental data:
Adjusted loss applicable
to common shareholders
excluding in-process
research and development
and amortization
of goodwill, intangible
assets and deferred
compensation, and
other acquisition-
related costs (10,941) (1,603) (22,032) (3,681)
Adjusted pro forma
basic and diluted
net loss per share $ (0.47) $ (0.10) $ (1.04) $ (0.27)
Shares used in per
share computation
- pro forma basic
and diluted (1) 23,211 16,104 21,098 13,503
Note: (1) Pro forma results assumes the conversion of preferred
stock into an equivalent number of common stock at time of issuance
AvantGo, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, December 31,
2000 1999
----- ----
ASSETS
Current assets:
Cash and cash equivalents $ 13,556 $ 5,835
Short-term investments 3,591 3,975
Accounts receivable,
net of allowance 2,583 1,478
Prepaid expenses
and other assets 1,431 255
--------------------------
Total current assets 21,161 11,543
Restricted cash 3,438 -
Property and equipment, net 5,027 893
Goodwill and other assets 16,304 63
--------------------------
Total assets $ 45,930 $ 12,499
==========================
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 3,657 $ 1,173
Accrued compensation and
related benefits 592 239
Current portion of capital
lease obligations - 4
Current portion of long-term debt 58 71
Deferred revenue 3,080 247
--------------------------
Total current liabilities 7,387 1,734
Deferred revenue 333 -
Capital lease obligations,
less current portion
Borrowings under bank
line of credit agreement,
net of current portion - 41
Stockholders' Equity:
Convertible preferred stock 67,708 19,480
Common stock 34,984 10,928
Notes receivable from stockholders (706) (100)
Deferred stock compensation (15,862) (7,475)
Revenue offset relating
to warrant agreements (1,226) -
Accumulated deficit (46,772) (12,109)
Accumulated other
comprehensive loss 84 -
--------------------------
Total stockholders' equity 38,210 10,724
--------------------------
Total liabilities and
stockholders' equity $ 45,930 $ 12,499
==========================
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